Embecta (EMBC) Bank of America Global Healthcare Conference 2026 summary

Business performance and recent challenges

• U.S. business, about half of global operations, experienced instability due to a combination of share loss at a major retailer, market softness, and inventory adjustments.

• Share loss at a key retailer shifted the company from first to second position, with revenue impact amplified by payer plan dynamics and lower rebates.

• Insulin pen prescriptions, a lead indicator, showed a recent decline, especially in retail, signaling market softness.

• Syringe sales, previously buoyed by compounding pharmacy demand, are returning to a long-term decline; swabs were discontinued globally due to supply issues.

• Inventory corrections and efficiency efforts by wholesalers are expected to resolve during the year.

Market trends and structural changes

• Competitive share loss appears to have stabilized, with plans to regain share through improved value propositions.

• Market softness, particularly in insulin pens, is being monitored, with more data needed to determine if the trend is structural.

• Decline in pen needle sales in retail outpaces that of insulin pens, possibly due to insurance loss, GLP-1 affordability, and ACA subsidy expiration.

• GLP-1 drugs have become more affordable, increasing their uptake and potentially accelerating shifts in diabetes treatment patterns.

• Pump adoption is growing steadily but not accelerating; market changes are recent and require further observation.

Strategic initiatives and diversification

• Diversification strategy began 18 months ago, focusing on new pen needle and syringe products, and building a B2B channel for generic GLP-1 partnerships.

• New syringe launched in China; new pen needle under regulatory review in the U.S., Brazil, and Europe.

• B2B partnerships with generic drug companies are expanding, with significant traction in India and Canada, and future launches expected in Brazil, China, and the U.S.

• The opportunity in GLP-1 co-packaging is now seen as more substantial than initially estimated.

• Acquisition of Owen Mumford adds a portfolio of medical devices and autoinjectors, broadening the product base beyond insulin delivery.